METABICAL

Metabical proved to be safe and effective in stimulating weight loss for moderately overweight individuals
CSP focus on developing, manufacturing, and marketing product that treat metabolic disorders, gastrointestinal disease, immune deficiencies, as well as other chronic and acute medical conditions Sales over $25 billion in 2007 Printup had over 20 years of experience marketing

ISSUE
Medical scheduled launching for January 2009

Today is February 2008 and Printups first order of business was to develop a viable positioning strategy and associated marketing communication plan for Metabical

BMI has three categories for adults:

Overweight (25 to 30)
Obese (30 to 40)

Severely obese (over 40)

Health and Social Issues

Excess weight approximately 65% of the entire adult population Being overweight is related to a number of serious health complication Overweight individual endure a significant social stigma Laziness and self-indulgence are common stereotypes associated with overweight The professional life negatively affected the hiring decision, wages, and promotions

WEIGHT LOSS DRUGS

Only OTC drug named Alli had been approved by the FDA Negative side effect of Alli included gastrointestinal conditions such as loose stools, increased defecation, incontinence, abdominal pain, and liver damage Other OTC weight-loss solutions were categorized as herbal or dietary supplements by the FDA and unregulated by the agency Herbal remedies and dietary supplements did not require stringent FDA testing and approval The dietary supplement ephedra was linked to several cases of sudden cardiac death and other serious health risk

METABICAL
Advantage:
Fat-blocking Calorie-absorption agent Reducing stress on heart or liver Controlled-release feature

Disadvantage:
Gastrointestinal discomfort Not effective to be consumed with excess fat and calories

Trial participant reached their weight-loss goals by week 12 Metabical create behavior modification and healthier eating habit Metabical not very effective in helping individuals with BMI of 30 or greater

CSP estimates that Metabical would be prices at $3 - $5 per day, with the average course of treatment lasting 12 weeks

SUPPORT PROGRAMS
The goal was to enable individuals to achieve better result than they would from the pill alone It would teach lifestyle skills for healthy weight maintenance after the initial weight loss achieved

The Support Program Would Include :

Reference materials Online weight-control tools (weight-loss tracker, food diary, nutritional and calorie calculator) Personal support (community forums) Meal plans (menu planner, grocery lists, thousands of recipes) Exercise plans (weight training and cardio routines)

Trends : Percentage of Overweight, Obese, and Severely Obese Adults in the U.S. 1976-2001

U.S. Adult % of U.S. Adults Overweight Obese Severely Obese Population (25 BMI < 30) (30BMI<40) (BMI40) (millions) 1999 to 2000 34.0 25.8 4.7 209 in 2000 1988 to 1994 33.0 20.1 2.9 185 in 1990 1976 to 1980 31.6 14.4 no data 163 in 1980

1999-2000 Men Women (BMI25) Prevalence (BMI25) (%) Prevalence (%) Overall Age (years) 20 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75+ 67.0 58.0 67.6 71.3 72.5 77.2 66.4 62.0 51.5 63.6 64.7 73.1 70.1 59.6

Education Level 2001 Obesity (%) Income Level 2001 Obesity (%) Less than high school 27.4 Less than $25000 32.5 High School 23.2 $25000-$40000 31.3 Some College 21.0 $40000-$60000 30.3 College 15.7 More than $60000 26.8

Not Satisfied with Weight

35% actively trying to lose weight 30% 70%

Had tried and failed to lose weight in past five years Want to change their behavior to live a healthy lifestyle

15% using drugs

Visited a health care provider Current weight loss in the market..

The level of education Age

Focused heavily on both the end consumer (the patient) and the healthcare provider

Promotions and Public Relation Advertising

Sales Force

Marketing Communication Strategy

Advertising

Objective: Raise awareness and educate patients

CSPs Direct To Consumer (DTC) Concepts

Those Extra 20 Pounds Losing Weight Look Your Best could be Killing is Tough You
Included a DTC

Television, Online, Radio, Print Media Blitz at

the time of drugs launch and heavy

advertising throughout the first year to establish the Metabical name

Advertising

Advertising Concepts Give your weight patients a safe alternatives

Your overweight patients are dying for help Introducing Metabical Short-term drug therapy and comprehensive support program for overweight patients
Target Professional Medical Community Push Advertising (Less than 5% of Total Marketing Budget)

Featuring Celebrity Endorser

Aimed at health care providers

Promotion

Direct Mail Campaign Planned a mailing for 100.000 health care provider (pamphlet and reply card offering a sample)
If

Viral Marketing Campaign The Metabical Challenge On-line contest

Social Networking Sites and Contestant Blogs Create Buzz about Metabical

done correctly, social and viral marketing had the extremely valuable, cost-effectife medium

potential to be an

Public Relations

Focusing on health issues for overweight patients About $4.3 million would be spent for Public Relations

Sales Force

SALES FORCE
To develop sales scripts and presentations providing clinical information Visited targeted medical offices four times a year to discuss the drug and provide samples

The Metabical sales team consisted of 32 sales representatives who called on approximately 3.200

medical offices

CONCLUSION
CSP had spent in R&D and on FDA trials for Metabical in 10 years and $400 million Consumer research showed great promise for Metabical Printup knew that poor positioning of the drug could spell disaster Printup needed to flesh out the optimal segmentation, targeting, and positioning of the drug

QUESTION

Who was the ideal target consumer? How should each participant in the decision-making process be addressed? How could these participants best be reached? What was the appropriate message to convey to each one of them? What was the role of the support program? What was the optimal rollout schedule for key marketing communications activities?

Identify and Establish Brand Positioning and Values

What, whom, who, why
Competitor POP & POD

COMPETITIVE MAPPING

TARGETING

SEGMENTATIO N

POSITIONING STATEMENT

COMPETITORS

Head to Head Competitors

Alli Xenical

Others Competitor

Herbal supplements products

POP AND POD (IN THIS CASE WITH ALLI) Point Of Parity
Category POP Weight-loss drugs Approved by FDA Have some side-effect (associated with excess fat & calories) Competitive POP Few negative side effects Worked in low-dose formulation

Point Of Differences
Category POD Less severe of gastrointestinal discomfort Competitive POD Weight-loss drug approved by FDA specifically for overweight individual contain calosera + meditonan = dramatic weightloss Average course of treatment = 12 weeks

SEGMENTING AND TARGETING

Demography
17 until 70 years old education level : less than high school, high school, some collage, collage income level : $25,000 - $80,000+ Demography 25 until 65 years old Collage $25,000 ++

Geography
urban and rural people
Geography Urban people

Psychography :
People who want to look like a movie star People who want to be healthier People who want to wear the skinny jeans People who want to lose weight with easy way People that fine in the way they are People with BMIs score : overweight (25-30), obese (30-40), severely obese (over 40)

Psychography People who want to be healthier People with BMI score of 25-30

Behavior :
Choose drugs to lose their weight Choose herbal to lose their weight Like sport Loyal to brand Value oriented Health treatment oriented Price sensitive Choose drugs based on advice Check their healthy if there is only damage

Behavior
Choose drugs to lose their weight Like sport Loyal to brand Value oriented Health treatment oriented Choose drugs based on advice

Doctor
specifically for physicians/ doctors, interlace cooperation with those who already have credibility, so that they can be one of brand endorser of our products. This will facilitate the stage of marketing communications

Strength :
FDA approval Few negative side effect Combined by : CALOSERA + MEDITONAN First mover which targeting over weight segment. Worked in a low-dose formulation Reducing stress on heart or liver function

Weakness :
Gastrointestinal discomfort when users consumed high levels of fat and calories. New player in dietary supplement

Opportunity :

SWOT
Threats :
Competition from Alli, Xenical and Herbal supplements Bad experience of dietary drugs Low awareness from consumers Opportunity for new entry players.

65% of the entire adult population categorized as overweight, obese and several obese. Overweight is the 2nd leading cause of preventable death in US Social stigma for overweight people in US Bad experience of Alli and Xenical effects -

Positioning Statement Choices

For men and women who concern about their over weight

Metabical is a weight-loss drug with prescription that only consume 1 pill a day

Which gives the most dramatic weight-loss, safe drugs and helping you to make a healthy life

Because of it had approved by FDA as a safe drugs with prescription and suggested by clinical researches.

POSITIONING STATEMENT

HEALTHY DIET MEDICINE FOR HEALTHY LIFE

MARKET COMMUNICATION

Objectives

Modes

Implement

Measure

Adjust

Building Brand Equity of Metabical

Messages : For Consumers : Measure your BMI, go to recommended doctors and get your prescription For Doctors : Its all about quality products

Visual : TV ads Non visual : radio, campaign

Traditional : sales promotion, event sponsorship Non traditional : mobile marketing, telemarketing, social media
Paid : TV ads, radio, Non paid : social media marketing

Modes

Local : TV ads, radio

TARGET AUDIENCE
Demographi c Primary Male and Female ages : 25 65 Urban people Psychographic Distribution point People who want to be healthier People who want to have proportional weight Male and Female doctors People who want to look best Medical office Pharmacy Drug store Media reach TV (main) Magazine Radio Mobile Social network

Secondary

Sales representative

Product Metabical is a weight-loss drug with prescription that only consume 1 pill a day

Price $4.5 / pill

Implement

4P
Promotion ATL and BTL campaign Place Pharmacy and Drug store

Implement

Marketing Communication Strategy Plan

1. Launch the Loosing Weight is Tough campaign invite the doctors to come in doctors conference about Metabical talk show for consumers about overweight brand endorser conference about health and overweight

Above The Line

Goals : To introduce metabical;
To communicate the proper positioning of Metabical; inform the benefits of Metabical; To attrack the attention from target market.

2. TV commercial

3. Radio

Above The Line

Goals :
To introduce metabical; To communicate the proper positioning of Metabical; Inform the benefits of Metabical; To attract the attention of target market

8. Magazine/ Newspaper

4. Billboard 7. Mobile Clinic and Sport Events 5. Print ads

6. Buzz Marketing

5.

Create Contest Miss Metabical

1.

Personal selling SPG & Booth event

Below The Line

Goals :
To communicate the proper positioning of Metabical; Inform the benefits of Metabical
2. Social media marketing Facebook & Twitter

4.

E-advertisement E-solution (Web) Health care articles

3.

Email marketing

Measure

Adjust

FINANCIAL CALCULATION AND CONTROLS

SURVEY RESULT
% of U.S. Adults

Year
2008* 1999 - 2000 1988 - 1994 1976 - 1980

Overweight 35.4
34 33 31.6

Obese 31.5
25.8 20.1 14.4

Severely Obese 6.5

4.7 2.9 -

US Adult Population (million) 230 in 2008 209 in 2000 185 in 1990 163 in 1980

Overweight population in 2008 70% were not satisfied with their weight 35% were actively trying to lose weight 15% were comfortable using drugs

81,420,000 56,994,000 28,497,000 12,213,000

CUSTOMER ANALYSIS
Per pill price : $4.5 Per day usage : 1 pill Per package usage : 84 days Per customer usage : 84 pills
Customer spending per package : $4.5 * 84 = $378

If a customer has an income of $25000/year, then its only takes 6% of income/month for 3

months
Potential customer interesting in Metabical: 9.770.400

Total acquiring assumption: 70%: 6.839.280

Financial Calculation
Price / Pill (doctors) : $4 Profit Margin : 50% Profit / Pill : $2
Potential revenue 2,297,998,080 Marketing cost 23,146,000 RnD and FDA cost 400,000,000 Production and Other Cost 1,148,999,040

Potential Profit

$725,853,040

So, in every dollar spent in marketing cost would gives $31.36 profit for Metabical

Controls
1 sales representative for 100 medical offices Build relationship with doctors

Discussion about Metabical every 3 months

Insentives for doctors